SEBA Bank AG, a fully operational crypto-focused bank based in Switzerland, is expanding into nine other markets.
With a banking and securities dealer license from the Swiss Financial Market Supervisory Authority, its services include crypto custody, trading, and asset management. The bank has launched its investment business including a cryptocurrency index.
It has been analyzed that SEBA Bank AG, which was formerly known as SEBA Crypto AG, is a crypto-focused bank headquartered in Zug, Switzerland, as the bank recently became fully operational and started onboarding Swiss clients after obtaining a banking and securities dealer license from the Swiss Financial Market Supervisory Authority (FINMA).
However, the bank has announced that it is extending service to “clients from selected foreign jurisdictions” in December. A spokesperson for the bank told that the selected jurisdictions are the U.K., Italy, Germany, France, Austria, Portugal, Netherlands, Singapore, and Hong Kong.
Likewise, SEBA Bank aims to build a bridge between the traditional banking world and the crypto world. Its services include custody storage, trading and liquidity management, asset and wealth management, transaction banking, and tokenization. They are aimed at professional investors, family offices, banks, asset managers, and blockchain companies.
The spokesperson further clarified that the bank accepts BTC, ETH, ETC, LTC, XLM and NEO for its custody service. As for trading, it accepts BTC, ETH, ETC, LTC, and XLM.
However, the bank launched its investment business along with its index for crypto assets called the SEBA Crypto Asset Select Index (SEBAX). The bank has also selected MV Index Solutions Gmbh (MVIS) to maintain the index and act as its administrator.
SEBA noted that Gentwo Digital was also brought on board to implement the specific restructuring requirements of the first investment solution.
The bank described:
“SEBAX is a dynamic, risk-optimized index with a broad market exposure of the crypto asset market.”
Similarly, MVIS stated:
“Its objective is to provide an investable index for the most secure, reliable and tradable crypto assets. The selection of the constituents is monitored on an ongoing basis. The index applies advanced techniques to reduce concentration into single constituents and to deliver enhanced diversification.”
So, according to its fact sheet, the index was established on July 2, 2019, and currently has five components that are rebalanced monthly. It is calculated daily with the constituent prices that converted to USD. A maximum of eight crypto assets ranked by market capitalization is selected for inclusion in the index.
However, MVIS has contracted with Cryptocompare Data Ltd. to maintain and calculate the index. In November 2019, the index components are 48.46% BTC, 26.70% ETH, 18.28% LTC, 3.43% XLM, and 3.13% ETC.
Crypto assets have to meet specific criteria to be eligible for the index and must rank within the top 30 coins by market capitalization.
“Stable coins and privacy coins are excluded.”
Thus, crypto assets are excluded with less 90 days of pricing history, those that are not listed on any of the eligible exchanges, and those that fail the index’s technical maturity and safety criteria.